Question

A city government adds street lights within its boundaries at a total cost of $100,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $6,300 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $9,000 to construct lights for several new streets in the city.Describe the various ways these costs could be reported on government-wide statements.